NEW YORK — The Leslie Fay Cos. received bankruptcy court approval Tuesday to reduce its credit facility by 33 percent and sell its 50 percent equity stake in Torren Fashions Inc., its joint venture with a Dominican Republic-based apparel finisher.

As reported, Leslie Fay, operating in Chapter 11 since April 1993, will reduce its borrowings to $100 million from $150 million thanks to improved cash flow. The new agreement is to be in effect through July 31 of next year.

Leslie Fay will receive $350,000 for its stake in Torren from Interamericana Products SA, its former partner in the joint venture. Leslie Fay paid $500,000 for its Torren stake in 1989.

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